Congress Loves To Hate AIG

Unlike the earlier, misguided outrage over the AIG bonuses which pale in comparision to the total taxpayer funds used to prop up AIG, Congress has finally stumbled upon an issue worth investigating according to Fortune.

Taxpayer funds were put into AIG, AIG then used some of these funds to make good on their payments to their various counterparties including Goldman Sachs, Barclays and many others. No haircuts, no questions, paid in full. This relationship is what made AIG a systemic risk, they owed money and needed to pay up to the rest of the street.

This issue is a little more difficult to understand than the bonus outrage so I wonder if the public will take it and run with it again or not.